Cochin Shipyard profit halves as debt rises, shares fall 5.8%
The defence shipbuilder reported a 50% drop in net profit for the second quarter despite revenue growth, prompting a sharp sell-off in Indian markets.
The defence shipbuilder reported a 50% drop in net profit for the second quarter despite revenue growth, prompting a sharp sell-off in Indian markets. Published 2026-11-11 by Falling Shares.
| By Falling Shares Intelligence, edited by Wung Thomas, Editor-in-Chief
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Shares in Cochin Shipyard Limited fell 5.84% on Wednesday after the state-owned shipbuilder reported that second-quarter net profit nearly halved. The decline came despite an 11.7% rise in revenue, as higher expenses and losses in shipbuilding weighed on results. The stock closed at 1,214.6 INR.
Profit drop outweighs revenue growth
Cochin Shipyard reported net profit of ₹53.77 crore for the quarter ended September, a drop of roughly 50% from the previous year, according to Mint and Economic Times. Revenue increased by 11.7% during the same period. The company attributed the margin contraction to higher expenses and a loss in its shipbuilding segment.
The results also highlighted a sharp rise in debt. At the end of the September quarter, borrowings had increased by 62% compared to the previous year, CNBC TV18 reported. The company announced an interim dividend of ₹3 per share, with a record date set for November 16, Financial Express noted.
Stock trails market and sector peers
While the broader market rose, Cochin Shipyard’s shares slipped. In the same session, the NIFTY 50 index gained 1.3%, and the NIFTY Infrastructure index also rose 1.3%. Falling Shares attributes the entire -5.7% move in the stock to company-specific factors, with the market and sector contributing positively.
The stock is currently 33.0% below its 52-week high of 1,842.8 INR. Over the past year, shares have fallen 31.6%. Falling Shares rates the stock as Unstable, citing annualised volatility of 40.5% compared to 13.6% for the benchmark index. The stock has experienced six sessions with moves of 5% or more in the past six months.